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It is easier and faster to change discretionary fiscal policy in countries where governments do not have to put forward and win their case in parliament (i.e. autocracies and dictatorships) as opposed to democracies, where they do have to win a vote on the floor of parliament to enact their proposed changes to discretionary fiscal policy.
Should I agree wth this statement, why?
Draw the Edgeworth box diagram for all possible exchanges in this situation. What is the contract curve for this exchange?
If the U.S. dollar fell sharply in value and the U.S. could no longer pay its depts to foreigners, how could the IMF be of help? In what way could the IMF have been of help prior to the occurrence of these problems? How does herding behavior and self..
Why is the above attractive to an investor? What would it allow them to do?
Your company has just signed a three- year non renewable contract with the city of New Orleans for earthmoving work. You are investigating the purchase of heavy construction equipment for this job. The equipment cost $200,000 and qualifies for 5 year..
On the other hand, the company in China is willing to pay only $135 per unit. What will be the effect on profit of accepting the order?
What will be his economic profit. How much consumer surplus is generated each day at this price. Illustrate what is the socially efficient number of portraits.
Suppose that annual income from a rental property is expected to start at ?$1,300 per year and decrease at a uniform amount of ?$50 each year after the first year for the 12?-year expected life of the property. The present equivalent of the rental in..
Suppose the likelihood that someone who logs onto a particular site on the Internet will purchase an item is 0.20.
The Invisible Hand theory shows how resources are moved in and out of markets or industries. State what would attract 1) more resources (sellers) into a certain market, 2) what would cause sellers to leave a market? Long-term, in perfectly competitiv..
Suppose the price elasticity of demand for bread is 1.00. If the price of bread falls by 20%, the quantity demanded will increase by: Suppose that a 20% decrease in the price of good Y causes a 20% increase in demand for good X. The coefficient of cr..
Thomas has income of $1500 today and $1000 tomorrow. He can lend and borrow at an interest rate of 10%. There is 10% ina´ation. His preferences for inter temporal consumption are represented by the following utility function U (c1 ; c2 ) = c1 + c2. W..
Which policy monetary or fiscal would be more appropriate to improve the situation. Explain your choice clearly using figures.
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